Senate finds GMA liable in fertilizer fund scam

President Arroyo should be held accountable for the mismanagement of the P728-million fertilizer fund.

This was the recommendation of the Senate Blue Ribbon and agriculture committees when they released their joint report on the inquiry on the alleged fertilizer scam yesterday.

Agriculture committee chairman Sen. Ramon Magsaysay Jr. said the President must explain the whole program and see to it that there is no doubt on how the funds were appropriated.

In the report, the committees are challenging Mrs. Arroyo to break her silence and put together the pieces of the unfinished puzzle.

"To this date, no effort on her part has been made, no categorical denial was even heard. But all allegations and testimonies point to her benefiting the most in an intricate scheme of deception and fraud," it added.

Malacañang welcomed the report, saying it would allow the issue to be resolved in the proper forum.

Presidential chief of staff Michael Defensor said the Palace was gratified that the investigation was concluded and that the committee had come up with a report so concerned officials could properly defend themselves.

"We are convinced that we will be absolved and this investigation would later be proven to be just part of political propaganda," he said.

Besides, the Senate committees are not expected to render a fair judgment of Mrs. Arroyo, according to Presidential Adviser for Political Affairs Gabriel Claudio.

"A highly politicized and vindictive forum such as the series of Senate hearings on the fertilizer issue can hardly be relied upon to render a fair judgment on the accountability of the President in this matter," Claudio said.

The Senate committee report also recommended that three former and two incumbent officials of the Department of Agriculture (DA) be charged with plunder and for violating the Anti-Graft and Corrupt Practices Act.

Strong probable criminal culpability was established against former agriculture secretary Luis Lorenzo, former undersecretaries Jocelyn Bolante and Ibarra Poliquit, incumbent undersecretary Belinda Gonzales and assistant secretary Jose Felix Montes, the report said.

It was also recommended that the same charges be filed against all regional directors of the DA who participated in the illegal transactions or dissipation of the P728-million fertilizer fund.

Bolante, who has been dubbed the mastermind behind the fund scam, has repeatedly snubbed Senate hearings on the matter. Lorenzo has returned to the private sector while Poliquit is now vice president of the Government Service Insurance System (GSIS).

In its report, the committee emphasized that the refusal of Bolante and Lorenzo to attend the hearings despite the issuance of four subpoenas and one invitation each by the Senate, "may, as a general rule, be taken as evidence, having tendency to establish their liability."

Both Lorenzo and Bolante went to the United States during the period of the hearings and used the trips as an excuse not to attend proceedings.

Last week, the Senate turned over to the Office of the Ombudsman the certified reports of the COA and the transcripts of testimonies given by various witnesses during the Senate hearings.

"From the testimonies of the witnesses who appeared before the committees and the records of the Commission on Audit (COA), there appears to be a massive misappropriation, diversion and malversation of public funds and raids on the farmers’ money," the committee report further stated.

Similar charges were recommended for the partners, suppliers or subordinates of the private sector who worked with the concerned officials of the DA.

The Office of the Ombudsman was advised to track the records and the complete paper trail leading to the fund scam.

Voucher system

In the area of legislation, the committee made a number of recommendations including a law institutionalizing assistance to farmers through a voucher system.

"The voucher system would be more effective in terms of providing timely assistance to farmers than a centralized flawed system under the current setup," the committee said.

The proposed law is aimed at tightening the registration and regulation of foundations, non-government organizations and people’s organizations.

"In the case of the fertilizer fund scam, a number of foundations, POs, NGOs and associations have become agents for money-laundering transactions, together with the National Agricultural Fisheries Council, a regular attached agency of the DA," the committee said.

The DA was also urged to set up an internal pre-audit service in order to prevent the large-scale illegal disbursement of resources and funds earmarked for farmers.

A total overhaul of the DA was also recommended as the committee noted that the present setup "works in such a way as if a mafia or syndicate is operating it."

The P728-million fertilizer fund was part of the Ginintuang Masaganang Ani (GMA) program of the administration for the purchase of farm inputs and implements for farmers and farm organizations.

The funds were allegedly not used for intended purposes but to ensure poll victory for administration candidates led by Mrs. Arroyo in the May 2004 elections.

Agriculture Secretary Domingo Panganiban also welcomed the recommendations of the Senate committees, saying that now is the time for those charged to shed light on the issue in the proper forum.

"I believe in our justice system and I hope this will clear the air once and for all. Uncertainties surrounding the alleged fertilizer fund scam make Filipinos uneasy and (have) stymied our economic takeoff," Panganiban said in a statement. — With Paolo Romero